shell company

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Shell Corporation

A company that exists as a vehicle for transactions without any independent activities or assets. Shell corporations are formed sometimes to obtain financing before they begin operations, or after a bankruptcy and business has ceased. They are also used in tax avoidance and tax evasion schemes: for example, companies may set up shell subsidiaries in tax havens and hide profits in them. See also: Reverse acquisition.

shell company

a company whose shares are currently listed on the STOCK MARKET but which is not actively trading. The share prices of such companies are generally very low and they may offer an attractive means for a business without a stock-market listing to acquire one by TAKEOVER.

shell company

a company that is not actively trading but that is still listed on the STOCK EXCHANGE. Such a company can be purchased in a REVERSE TAKEOVER by a company wishing to obtain a stock-exchange listing.
References in periodicals archive ?
Banker and lender, Deepak Parekh, said on Tuesday that unidentifiable shell companies are being used to pay bribes.
In fact, many named as directors of these shell companies were unaware of their status.
Purti Power and Sugar Ltd in which Gadkari owns shares, consists of 18 companies that hold 80 per cent of equity in Purti Industries, and are seemingly shell companies.
Shell LLCs and other paper companies can be used in a number of common money laundering schemes, such as credit card bust-outs where the company's credit is built up on various cards using false identities, and then other illicit shell companies who are part of the scheme make phony transactions.
He is currently serving as Chairman Shell Companies in Pakistan and Managing Director Shell Pakistan Limited since September 2006.
The largest of the shell companies was begun two years before Vice President Dick Cheney became Halliburton's chief executive, the report said.
This and next month's columns focus on billing schemes that involve shell companies.
The London-based Shell companies have agreed to sell their PET and PEN businesses to the Mossi & Ghisolfi Group of Tortona, Italy.
Mikhail Syroejine, a station procurement official, allegedly used Yegmenov's shell companies to receive a payment of $2 million for Sony equipment.
In addition, Organik is creating three public shell companies, meaning they will exist but won't have actual operations.
IP Checkups plans to release a free, online database of patents belonging to Intellectual Ventures and its shell companies.
MAURITIUS assured India on Friday that it would not allow shell companies to operate from its soil.